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An industrial machine tools manufacturer buys parts from a supplier. For a particular part, the monthly demand is expected to average 7 5 0 units.
An industrial machine tools manufacturer buys parts from a supplier. For a particular part, the monthly demand is expected to average units. Ordering is done by phone and is estimated to cost $ including the cost of a quick parts inventory and payment. The company has determined that its inventory carrying costs are per year. The product is valued at the suppliers facility at $ each. They charge $ per part to have them shipped to the manufacturers facility.
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